The indicator slightly increased compared to 2022 – by 0.6%, ending a two-year downward trend
China’s steelmaking companies produced 1.019 billion tons of steel in 2023, up 0.6% from 2022. Thus, the downward trend in the country’s steel industry has stopped after two consecutive years of declining production. This is evidenced bydatafrom the China Iron and Steel Association (CISA).
Last year, the Chinese government did not impose restrictions on steel production in line with its ambitions to reduce CO2emissions, which contributed to an increase in production and revenue of local steelmakers. At the same time, in 2021-2022, the downward trend in the industry was supported by the relevant restrictions.
No restrictions were imposed in 2023, as the Chinese authorities prioritized supporting the economy and recovering the troubled real estate sector. Although demand for steel from the construction industry was still insufficient, this was partially offset by high consumption of steel products by the shipbuilding, energy and automotive sectors, which supported steel companies.
At the same time, the period that contributed to the increase in steel production in 2023 was January-July, as the last 5 months of 2023 saw a month-on-month decline. In particular, in December, production fell by 11.4% compared to November and by 14.9% y/y – to 67.44 million tons, the lowest level since December 2017.
China’s pig iron production in 2023 amounted to 871 million tons, up 0.7% compared to 2022. Rolled steel output increased by 5.2% y/y – to 1.36 billion tons during the year. In December, pig iron production fell by 11.8% y/y – to 60.87 million tons, while rolled steel output increased by 1.5% y/y – to 108.5 million tons.
As GMK Center reported earlier, in 2022, Chinareduced steel productionby 2.2% compared to 2021, to about 1.01 billion tons. The country’s steel production fell due to a slowdown in the economy, a downturn in the real estate market, and government restrictions to improve the country’s environmental situation.
In 2021, due to similar factors, Chinese steelmakers reduced steel production by 3% y/y – to 1.03 billion tons. Annual production fell for the first time in 6 years.
shutterstock.comNEWSGLOBAL MARKETCHINA177515 January 2024
China exported 90.3 million tons of
steel products in 2023
Vadim KolisnichenkoShipments of products abroad increased by 36.2% and reached a maximum since 2016
In 2023, Chinese steel companies increased their exports of steel products by 36.2% compared to 2022, to 90.3 million tons. Export shipments have reached their highest level since 2016. This is evidenced by data from the China Iron and Steel Association (CISA).
In December 2023, Chinese steelmakers exported 7.73 million tons of steel, down 3.5% compared to November. The average export price in December amounted to $824.9/t, up $14/t or 1.7% m/m.
Steel imports to China in January-December 2023 amounted to 7.64 million tons, which is 27.6% less than in 2022. In December, Chinese consumers imported 665 thousand tons of steel, up 8.3% month-on-month.
The average price of steel imports in December amounted to $1569.6 per tonne, down 3.6% compared to November.
High rate of steel exports from China in 2023 was caused by low prices for steel products compared to other exporting countries, as well as weak domestic demand throughout the year. This forced domestic producers to send their surplus products abroad.
The bulk of steel is exported to regions where there are no trade barriers, including Southeast Asia, the Middle East, South Asia, Central America, etc.
As GMK Center reported earlier, Chinaincreased steel productionby 1.5% y/y – to 952.14 million tons in January-November 2023. In November, Chinese steelmakers reduced steel production by 3.8% month-on-month and increased it by 0.4% y/y – to 76.1 million tons. Thus, in 2023, steel production in China is likely to exceed 1 billion tons.
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